Message Font: Serif | Sans-Serif
No. of Recommendations: 0
What she needs to know is how will the 1099C affect her income for taxes and for the kids school loans - FAFSA. If the forgiveness of debt shows as income, then she might have to pay more for education and not receive the loans, scholarships, and grants the kids need to help pay for college. That would be a disaster for the two children currently attending college.

As of now she is under the impression that going into bankruptcy she will not receive any 1099 on the foreclosure, there will be no forgiveness of debt, nor can she be sued for the debt later on.


Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.